Record Applied Materials Earnings Just Don't Cut It

Applied Materials Inc. (NASDAQ: AMAT) reported its fiscal second-quarter financial results after the markets closed on Thursday. During this period, Applied Materials achieved record quarterly earnings, as well as revenues. However, this was not enough to keep up with the firm’s pace over the past year.

The company posted $1.22 in earnings per share (EPS) on $4.57 billion in revenue, while consensus estimates from Thomson Reuters had called for $1.14 in EPS on $4.45 billion in revenue. The same period of last year reportedly had $0.79 in EPS on $3.55 billion in revenue.

In terms of its segments, the company reported as follows:

Semiconductor Systems had net sales of $3.0 billion, with an operating income of $1.07 billion.

Applied Global Services had net sales of $943 million, with an operating income of $278 million.

Display and Adjacent Markets had net sales of $600 million, with an operating income of $162 million.

Looking ahead to the fiscal third quarter, the company expects to see EPS in the range of $1.13 to $1.21 and net sales between $4.33 billion and $4.53 billion. Consensus estimates call for $1.16 in EPS on $4.53 billion in revenue for the quarter.

On the books, Applied Materials cash and cash equivalents totaled $4.87 billion at the end of the quarter, down from $5.01 billion at the end of the previous fiscal year.

Gary Dickerson, president and CEO, commented:

Applied’s performance in the second fiscal quarter was another all-time record for the company, which demonstrates strong execution and customer pull for materials solutions that help accelerate roadmaps and bring new devices to market faster. Applied has the broadest opportunity across major technology trends, and our markets are strong, with long-term growth drivers firmly in place.

Shares of Applied Materials were last seen down more than 9% at $49.00, with a consensus analyst price target of $70.14 and a 52-week range of $40.79 to $62.40.